analysis of the J.C. Penny Company, Incorporated (JCP) and its financial statements. We begin by giving a background of the company and an overview of the company’s commodities for brief understanding; and then proceed to discuss the financial state of JCP. We review and analyze the company by calculating ratios necessary to conclude JCP’s current financial health. We then provide a section showing the company’s current pro forma financial statements. Next, there is a pro forma projection for the year
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same trend, it was below industry standard. Return on equity (ROE) was also down and maintained a poor trend till 2008. Even though it increased in 2009, the equity was below industry average. Overall the management must take action on decreasing financial trends. Net cash from operations has reduced to half from$7,192M in 2006 to $3,481M in 2009. The occupancy rate of Riverside in 2009 is 52.2% which is high than industry average of 45.4% and hence it is using fixed assets more productively than average
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Kelsey Dobbins Case Study 3 1. Google’s business model can be broken down into eight parts. Within this question, I will go over what each part is and explain how it fits into the business model. Part 1 is Google’s “key partners”. This can include supplier, distributors, original equipment manufactures, as well as the Open Handset Alliance. Part 2 is “key resources”. A lot of time at Google is spent maintaining and improving the IT infrastructures and products and services. This is also where
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S. Truett Cathy was a successful entrepreneur almost from birth. He started by selling Coca-Cola door to door, then magazines and newspapers, before finally entering the restaurant business. Several successful years later, he began working on a chicken sandwich for his restaurants and customer response was so great that Cathy knew he was on to something special. Cathy initially wanted to license the sales of the product to other restaurants, but saw that it could created quality control issues and
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expenses 1,375 $ 20,000.00 $ 15,000.00 $ 5,000.00 $ 5,000.00 $ 20,000.00 25.00% Units 12 Contribution margin Net operating income Degree of operating leverage Degree of operating leverage % increase in sales % increase in net operating income $ $ 8,000.00 2,000.00 4.0 4 5% 20% 13 14 Contribution margin Net operating income Degree of operating leverage $ $ 14,000 2,000
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income $1,200,000 4. A. Operating leverage is 4 B Operating leverage is 7 C. Operating leverage is 19 5 If the company decides to stay the course and continue to pay a commission of 15% this will allow them to operate with the lowest possible break even point. While a 20% commission will put the break-even point at the highest level of the three scenarios. However if the company decides to stay the course they will have a relatively low operating leverage and will need a substantial increase
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| | | | % | per unit $ | Units sold | | | | | Sales | | $ 20,000.00 | 100% | $ 20.00 | 1000 | | | | | Variable expenses | | $ 12,000.00 | 60% | $ 12.00 | | | | | | Contribution Margin | | $ 8,000.00 | 40% | $ 8.00 | | | | | | Fixed Expenses | | $ 6,000.00 | | | | | | | | Net operating income | | $ 2,000.00 | | | | | | | | | | | | | | | | | | | | | | |
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checked by CM Contribution Margin Ratio: Total CM/ Total Sales In terms of Units: CM Ratio: Unit CM/ Unit SP Break even point in Units Sold: FC/ CM per Unit Break even point in total sales dollars: FC / CM Ratio Operating Leverage: Degree of Operating Leverage = Contribution Margin/ Net Operating Income 1) 2) Variable Cost: Fixed Cost: Mixed Cost: with Variable and Fixed: cell phone bill which is $50 a month and additional 20 cents per message. Chapter 6: Cost Behavior:
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1. FinePrint currently is operating at around full capacity: 150,000 brochures. Should Johnson accept the special order? See Answer Below Regular Ops Difference Special Order 25,000 Option 1 Option 2 Option 1 Option 2 Revenues $25,500 $23,750 -$1,750 $4,250 $2,500 Variable Cost Direct Material 6,000 6,000 1,000 1,000 Direct Labor 1,500 1,500 250 250
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fell to a trough at 0.78%. In order to measure asset use efficiency, total asset turnover was used. As can be seen, asset usage saw an improvement from 2004 to 2005. This, however, deteriorated slowly through 2006 and greatly in 2007. Jones’ financial leverage did not vary much throughout the span of the analysis. It ranged between 3.19 and 3.49. What this tells us is that their debt levels remained relatively stable. For Jones to succeed, he must keep up the good work offering a competitive price
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